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AIZ Q3 Earnings Beat Estimates on Lifestyle and Housing Strength
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Key Takeaways
AIZ earned $6.15 per share, up 7.3% year over year, as revenue rose 9.2% to $3.55 billion.
Lifestyle adjusted EBITDA grew 14.6%, while Housing gained from favorable non-catastrophe loss experience.
Assurant expects 2026 adjusted EBITDA growth of about 10%, excluding reportable catastrophes.
Assurant, Inc. (AIZ - Free Report) reported third-quarter 2026 adjusted earnings of $6.15 per share, which beat the Zacks Consensus Estimate of $4.57 by 34.6%. The bottom line increased 7.3% year over year.
Revenues increased 9.2% year over year on a GAAP basis. Reported revenues of $3.55 billion surpassed the consensus estimate of $3.44 billion by 3.2%. Results benefited from strong Global Lifestyle and Global Housing performances, favorable non-catastrophe loss experience and higher net earned premiums, fees and other income.
Net earned premiums increased 7.6% year over year to $2.83 billion, supported by growth across both operating segments. Fees and other income climbed 19.7% to $579.7 million, reflecting continued expansion in protection and service programs. The Zacks Consensus Estimate was pegged at $3.40 billion. Our estimate was pegged at $3.25 billion.
Net investment income advanced 10.3% year over year to $147.2 million. The Zacks Consensus Estimate was pegged at $149 million. Our estimate was pegged at $158.7 million. Total segment net earned premiums, fees and other income grew 9.5% to $3.41 billion, driven by higher mobile supply-chain volumes, device protection programs and growth in Homeowners.
Assurant Lifestyle Earnings Rise on Connected Living
Global Lifestyle revenues increased 10.6% year over year to $2.76 billion. The Zacks Consensus Estimate was pegged at $2.76 billion. Our estimate was pegged at $2.68 billion. Net earned premiums, fees and other income rose 10.6% to $2.66 billion, primarily due to higher mobile supply-chain volumes, global device protection programs, extended service contracts and financial services contributions. The Zacks Consensus Estimate was pegged at $2.66 billion. Our estimate was pegged at $2.57 billion.
Adjusted EBITDA increased 14.6% year over year to $236.9 million. Connected Living adjusted EBITDA surged 23.2% to $157.5 million, supported by global mobile growth and higher financial services contributions. Global Automotive adjusted EBITDA increased 0.5% to $79.4 million. Excluding a $6.1 million non-recurring benefit in the prior-year quarter, Automotive earnings increased 9%, reflecting improved loss experience and global partnerships.
The number of protected mobile devices rose 5.6% to 69.2 million, while serviced devices increased 58.3% to 7.6 million. Global protected vehicles increased 1.8% to 57.5 million.
AIZ Housing Benefits From Favorable Loss Experience
Global Housing revenues increased 5.7% year over year to $781.2 million. The Zacks Consensus Estimate was pegged at $772 million. Our estimate was pegged at $730.8 million. Net earned premiums, fees and other income advanced 6% to $744.9 million, primarily reflecting Homeowners growth in specialty products, lower catastrophe reinsurance costs and higher average insured values within lender-placed insurance. The Zacks Consensus Estimate was pegged at $734 million. Our estimate was pegged at $691.3 million.
Adjusted EBITDA rose 4.7% year over year to $268.3 million. Excluding reportable catastrophes, adjusted EBITDA increased 11.1% to $288 million, mainly due to favorable non-catastrophe loss experience, lower claims frequency and reduced catastrophe reinsurance costs. Reportable catastrophe losses increased to $19.7 million from $2.9 million. The Global Housing combined ratio deteriorated 40 basis points to 70.6%, while the non-catastrophe loss ratio improved 300 basis points to 30.6%. Results were partly offset by $7.9 million of lower favorable prior-period reserve development.
Assurant Faces Higher Expenses and Corporate Losses
Total benefits, losses and expenses increased 9.6% year over year to $3.18 billion. Our estimate was pegged at $3 billion. Cost of sales jumped 25.7% to $312.9 million, while general expenses increased 9.1% to $683.6 million. Policyholder benefits rose 10.3% to $782.4 million.
Corporate and Other recorded an adjusted EBITDA loss of $40.8 million, wider than the year-ago loss of $31.6 million. The deterioration reflected higher employee-related expenses and investments supporting the Home Warranty business, partially offset by increased investment income. The Zacks Consensus Estimate was pegged at a loss of $36.93 million.
The pre-tax income margin contracted 30 basis points to 10.3%, while the net income margin declined 40 basis points to 8.1%. GAAP net income increased 3.6% year over year to $275.2 million.
AIZ Maintains Strong Liquidity and Returns Capital
Holding company liquidity totaled $954 million as of Sept. 30, 2026, exceeding the company's minimum target by $729 million. Operating segments paid approximately $226 million in dividends to the holding company during the quarter.
Assurant repurchased approximately 268,000 shares for $75 million and paid $44 million in common stock dividends. During October, the company bought back another 108,000 shares for $30 million, leaving $469 million under its authorization.
Total assets were $36.49 billion, while stockholders' equity increased to $5.99 billion from $5.87 billion at the end of 2025. The debt-to-total-capital ratio improved 80 basis points year over year to 26.9%.
Assurant Raises Its 2026 Earnings Outlook
Assurant now expects adjusted EBITDA, excluding reportable catastrophes, to increase approximately 10% in 2026. Excluding the impact of lower favorable prior-year reserve development, underlying growth is expected to reach the low-to-mid teens.
Global Lifestyle adjusted EBITDA is projected to increase by a mid-to-high-teens percentage, supported by Connected Living and Global Automotive. Global Housing adjusted EBITDA, excluding catastrophes, is expected to grow by a mid-single-digit percentage.
Adjusted earnings per share, excluding reportable catastrophes, are now expected to increase by a low-double-digit percentage. Corporate and Other's adjusted EBITDA loss is projected at approximately $150 million. Management also expects full-year share repurchases of $350 million.
Everest Group, Ltd. (EG - Free Report) reported third-quarter 2026 operating income of $7.62 per share, which missed the Zacks Consensus Estimate of $9.38 by 18.8%. The bottom line increased 1.1% year over year. Total revenues of $3.71 billion declined 14% year over year and missed the Zacks Consensus Estimate of $3.84 billion by 3.3%.
Gross written premiums declined 14.5% year over year to $3.74 billion, reflecting lower contributions from Reinsurance Treaty and Legacy businesses. Net investment income increased 17.4% year over year to a quarterly record of $634 million, driven by strong private equity performance. Total claims and expenses declined 14.9% to $3.45 billion. The company reported an underwriting loss of $223 million, wider than the year-ago loss of $130 million.
Principal Financial Group, Inc.’s (PFG - Free Report) third-quarter 2026 operating earnings of $2.22 per share missed the Zacks Consensus Estimate of $2.46 by 9.8%. The bottom line increased 5.7% year over year. Revenues rose 9.7% year over year to $4.3 billion, which missed the consensus mark of $4.31 billion by 0.8%. Total expenses increased 10% year over year to $3.78 billion. Benefits, claims and settlement expenses rose 18.1% to $2.32 billion, while operating expenses increased 1.7% to $1.40 billion.
Non-GAAP operating earnings increased 2% to $481.8 million. Excluding significant variances, operating earnings advanced 3% to $540.6 million. Net income attributable to PFG increased to $631.9 million from $213.8 million a year earlier.
Prudential Financial, Inc. (PRU - Free Report) reported third-quarter 2026 adjusted operating income of $3.77 per share, beating the Zacks Consensus Estimate of $3.31 by 13.9%. The bottom line declined 6.9% year over year. Total adjusted operating revenues declined 14.3% year over year to $13.49 billion, missing the consensus estimate by 3.4%. Assets under management increased marginally to $1.62 trillion. Premiums declined 29.4% year over year to $5.89 billion. However, policy charges and fee income increased 2% to $1.15 billion.
Net investment income increased 8.8% year over year to $5.19 billion, while asset management fees, commissions and other income decreased 15.7% to $1.26 billion. Total benefits and expenses declined 14.8% year over year to $11.85 billion. Operating expenses increased 3.6% to $1.62 billion, while interest credited to policyholders' account balances rose 18.8% to $1.44 billion.
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AIZ Q3 Earnings Beat Estimates on Lifestyle and Housing Strength
Key Takeaways
Assurant, Inc. (AIZ - Free Report) reported third-quarter 2026 adjusted earnings of $6.15 per share, which beat the Zacks Consensus Estimate of $4.57 by 34.6%. The bottom line increased 7.3% year over year.
Revenues increased 9.2% year over year on a GAAP basis. Reported revenues of $3.55 billion surpassed the consensus estimate of $3.44 billion by 3.2%. Results benefited from strong Global Lifestyle and Global Housing performances, favorable non-catastrophe loss experience and higher net earned premiums, fees and other income.
Assurant, Inc. Price, Consensus and EPS Surprise
Assurant, Inc. price-consensus-eps-surprise-chart | Assurant, Inc. Quote
AIZ Revenue Growth Reflects Broad-Based Gains
Net earned premiums increased 7.6% year over year to $2.83 billion, supported by growth across both operating segments. Fees and other income climbed 19.7% to $579.7 million, reflecting continued expansion in protection and service programs. The Zacks Consensus Estimate was pegged at $3.40 billion. Our estimate was pegged at $3.25 billion.
Net investment income advanced 10.3% year over year to $147.2 million. The Zacks Consensus Estimate was pegged at $149 million. Our estimate was pegged at $158.7 million. Total segment net earned premiums, fees and other income grew 9.5% to $3.41 billion, driven by higher mobile supply-chain volumes, device protection programs and growth in Homeowners.
Assurant Lifestyle Earnings Rise on Connected Living
Global Lifestyle revenues increased 10.6% year over year to $2.76 billion. The Zacks Consensus Estimate was pegged at $2.76 billion. Our estimate was pegged at $2.68 billion. Net earned premiums, fees and other income rose 10.6% to $2.66 billion, primarily due to higher mobile supply-chain volumes, global device protection programs, extended service contracts and financial services contributions. The Zacks Consensus Estimate was pegged at $2.66 billion. Our estimate was pegged at $2.57 billion.
Adjusted EBITDA increased 14.6% year over year to $236.9 million. Connected Living adjusted EBITDA surged 23.2% to $157.5 million, supported by global mobile growth and higher financial services contributions. Global Automotive adjusted EBITDA increased 0.5% to $79.4 million. Excluding a $6.1 million non-recurring benefit in the prior-year quarter, Automotive earnings increased 9%, reflecting improved loss experience and global partnerships.
The number of protected mobile devices rose 5.6% to 69.2 million, while serviced devices increased 58.3% to 7.6 million. Global protected vehicles increased 1.8% to 57.5 million.
AIZ Housing Benefits From Favorable Loss Experience
Global Housing revenues increased 5.7% year over year to $781.2 million. The Zacks Consensus Estimate was pegged at $772 million. Our estimate was pegged at $730.8 million. Net earned premiums, fees and other income advanced 6% to $744.9 million, primarily reflecting Homeowners growth in specialty products, lower catastrophe reinsurance costs and higher average insured values within lender-placed insurance. The Zacks Consensus Estimate was pegged at $734 million. Our estimate was pegged at $691.3 million.
Adjusted EBITDA rose 4.7% year over year to $268.3 million. Excluding reportable catastrophes, adjusted EBITDA increased 11.1% to $288 million, mainly due to favorable non-catastrophe loss experience, lower claims frequency and reduced catastrophe reinsurance costs.
Reportable catastrophe losses increased to $19.7 million from $2.9 million. The Global Housing combined ratio deteriorated 40 basis points to 70.6%, while the non-catastrophe loss ratio improved 300 basis points to 30.6%. Results were partly offset by $7.9 million of lower favorable prior-period reserve development.
Assurant Faces Higher Expenses and Corporate Losses
Total benefits, losses and expenses increased 9.6% year over year to $3.18 billion. Our estimate was pegged at $3 billion. Cost of sales jumped 25.7% to $312.9 million, while general expenses increased 9.1% to $683.6 million. Policyholder benefits rose 10.3% to $782.4 million.
Corporate and Other recorded an adjusted EBITDA loss of $40.8 million, wider than the year-ago loss of $31.6 million. The deterioration reflected higher employee-related expenses and investments supporting the Home Warranty business, partially offset by increased investment income. The Zacks Consensus Estimate was pegged at a loss of $36.93 million.
The pre-tax income margin contracted 30 basis points to 10.3%, while the net income margin declined 40 basis points to 8.1%. GAAP net income increased 3.6% year over year to $275.2 million.
AIZ Maintains Strong Liquidity and Returns Capital
Holding company liquidity totaled $954 million as of Sept. 30, 2026, exceeding the company's minimum target by $729 million. Operating segments paid approximately $226 million in dividends to the holding company during the quarter.
Assurant repurchased approximately 268,000 shares for $75 million and paid $44 million in common stock dividends. During October, the company bought back another 108,000 shares for $30 million, leaving $469 million under its authorization.
Total assets were $36.49 billion, while stockholders' equity increased to $5.99 billion from $5.87 billion at the end of 2025. The debt-to-total-capital ratio improved 80 basis points year over year to 26.9%.
Assurant Raises Its 2026 Earnings Outlook
Assurant now expects adjusted EBITDA, excluding reportable catastrophes, to increase approximately 10% in 2026. Excluding the impact of lower favorable prior-year reserve development, underlying growth is expected to reach the low-to-mid teens.
Global Lifestyle adjusted EBITDA is projected to increase by a mid-to-high-teens percentage, supported by Connected Living and Global Automotive. Global Housing adjusted EBITDA, excluding catastrophes, is expected to grow by a mid-single-digit percentage.
Adjusted earnings per share, excluding reportable catastrophes, are now expected to increase by a low-double-digit percentage. Corporate and Other's adjusted EBITDA loss is projected at approximately $150 million. Management also expects full-year share repurchases of $350 million.
AIZ Zacks Rank
Assurant currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Multi-Line Insurers
Everest Group, Ltd. (EG - Free Report) reported third-quarter 2026 operating income of $7.62 per share, which missed the Zacks Consensus Estimate of $9.38 by 18.8%. The bottom line increased 1.1% year over year. Total revenues of $3.71 billion declined 14% year over year and missed the Zacks Consensus Estimate of $3.84 billion by 3.3%.
Gross written premiums declined 14.5% year over year to $3.74 billion, reflecting lower contributions from Reinsurance Treaty and Legacy businesses. Net investment income increased 17.4% year over year to a quarterly record of $634 million, driven by strong private equity performance. Total claims and expenses declined 14.9% to $3.45 billion. The company reported an underwriting loss of $223 million, wider than the year-ago loss of $130 million.
Principal Financial Group, Inc.’s (PFG - Free Report) third-quarter 2026 operating earnings of $2.22 per share missed the Zacks Consensus Estimate of $2.46 by 9.8%. The bottom line increased 5.7% year over year. Revenues rose 9.7% year over year to $4.3 billion, which missed the consensus mark of $4.31 billion by 0.8%. Total expenses increased 10% year over year to $3.78 billion. Benefits, claims and settlement expenses rose 18.1% to $2.32 billion, while operating expenses increased 1.7% to $1.40 billion.
Non-GAAP operating earnings increased 2% to $481.8 million. Excluding significant variances, operating earnings advanced 3% to $540.6 million. Net income attributable to PFG increased to $631.9 million from $213.8 million a year earlier.
Prudential Financial, Inc. (PRU - Free Report) reported third-quarter 2026 adjusted operating income of $3.77 per share, beating the Zacks Consensus Estimate of $3.31 by 13.9%. The bottom line declined 6.9% year over year. Total adjusted operating revenues declined 14.3% year over year to $13.49 billion, missing the consensus estimate by 3.4%. Assets under management increased marginally to $1.62 trillion. Premiums declined 29.4% year over year to $5.89 billion. However, policy charges and fee income increased 2% to $1.15 billion.
Net investment income increased 8.8% year over year to $5.19 billion, while asset management fees, commissions and other income decreased 15.7% to $1.26 billion. Total benefits and expenses declined 14.8% year over year to $11.85 billion. Operating expenses increased 3.6% to $1.62 billion, while interest credited to policyholders' account balances rose 18.8% to $1.44 billion.